Candidate eyes pension reform for public-sector workers

Brian Rich said that, as a businessman, he understands that pension plans for state and school employees are financially unsustainable in their present form, so pension reform is the cornerstone of his campaign for the state Senate.

The plans need to be shifted to an IRA or 401(k) plan like those used by businesses, Rich said.

He is seeking the Republican nomination in the April 24 primary election for a four-year term in the 29th Senatorial District.

The seat is held by Sen. David G. Argall, a Schuylkill County Republican who is seeking re-election.

Rich said, if elected, he wouldn't take a pension and would limit himself to two terms.

The defined-benefit plans provide retirement payments based on years of service and wages.

"Bethlehem Steel is gone because of defined-benefit programs," Rich said. "It's the same problem General Motors had. We need to tackle that issue and simply bring some parity between the public sector and the private sector in terms of what expectations are."

Contractual obligations should be honored with current employees, but new employees should go into a different retirement plan, Rich said.

Something also needs to be done to improve the environment for businesses, he said.

That would include reform of workers' compensation insurance, the addition of wellness incentives to health care insurance, ending the practice of different agencies enforcing the same type of regulations, no new taxes and lower corporate tax rates, particularly for manufacturing and value-added jobs, Rich said.

His own businesses are an example of value-added jobs, Rich said. Mined coal is used by power plants that turn it into steam for electricity that is sold to public utilities.

"They're the kind of jobs that people are able to take out mortgages," he said. "The family can send the kids to college. Valued-added jobs are the kind of jobs that built the America we grew up in."

Rich said he wouldn't promise to eliminate school property taxes because he doesn't want to make promises he's not convinced he can keep.

The pension plans and costs have to be controlled before anyone can gauge the funding needed for public schools, Rich said.

"I'm optimistic that, if we can corral some of the expenses and utilize our strengths we can create the kind of economic prosperity that leads into social prosperity," he said.